5 Undervalued Fintech Stocks You Should Buy Before 2023

There are several examples of fintech firms, including those developing innovative digital payment-processing technologies and designing and running person-to-person payment apps.

Fintech has a lot of promise. Despite the recent expansion of the cashless payment industry, most transactions are still carried out using cash. Even though internet banking companies often provide higher interest rates and cost structures than conventional banks, most customers still rely on branch-based banking.

There’s no denying that the current stock market slump has taken its toll on several fintech stocks. Growth stocks have absorbed the brunt of the losses, and most fintech falls under this group.

There’s a long-term potential in the fintech business, so now is an excellent time to seek firms to invest in for the long run.

With this in mind, we’ve compiled a list of five high-quality fintech stocks for you:

Fiserv (FISV)

After Alphabet’s top fintech stock, we have Fiserv, a payments business that assists banks in making the switch from paper-based systems to electronic ones. In addition, Fintech companies benefit from the company’s assistance. Fiserv’s customers include card issuer processing and network services, payments, e-commerce, and merchant acquiring and processing. Clover, a cloud-based point-of-sale system, is one of its most popular offerings.

Affirm Holdings (NASDAQ: AFRM) and Fiserv announced a collaboration in May 2022 that would let Fiserv merchant customers use Affirm’s services via the Carat Operating System. Affirm is a “buy now, pay later” business.

An even easier onboarding experience for Carat’s wide variety of merchants, as well as a wider omnichannel presence, were among Geoff Kott, Affirm’s chief revenue officer’s remarks at the announcement of the partnership.

Adyen

There is no doubt that Adyen (OTC: ADYE.Y) should be included alongside Block and PayPal when discussing cryptocurrencies.

Adyen, based in the Netherlands, supplies companies with payment processing solutions and operates worldwide (including a significant US presence). In-person, online, and mobile payment options are all available via this company. On the other hand, Adyen is a payment processing tech company that primarily serves big corporations. For example, Adyen is used by Microsoft (NASDAQ: MSFT), Uber (NYSE: UBER), and McDonalds (NYSE: MCD) to process payments. In addition, you may have heard that eBay no longer uses PayPal as its preferred payment processor. That went to Adyen’s advantage.

Adyen has a 63 percent EBITDA margin, which might go much higher as the firm grows.

Robinhood Markets Inc. (HOOD)

With over 22 million funded accounts and over 18 million monthly active users, Robinhood, the brokerage that revolutionized retail investing, has earned a position on our list of the top fintech stocks to purchase. Even though Robinhood’s payment-for-order-flow model has come under scrutiny, the brokerage has a lot to offer, including retirement account options, expanding access to cryptocurrency, live customer support, a recurring investment option, and a feature that allows investors to transfer their outside accounts.

Moreover, Robinhood’s user base may continue to expand due to these efforts, which aim to increase stock market participation among individual investors.

SoFi

Let’s look at SoFi Technologies, a digital personal finance startup. Lending, Financial Services, and Technology Platforms comprises the company’s three main business units. SoFi is certain that its products and services may assist customers in achieving financial independence.

As recently as yesterday, SoFi Invest announced that it would begin offering longer trading hours. Trading hours will be extended from 9 AM to 8 PM, resulting in an additional four and a half hours of trading time for members. Members can put their investment ideas into action from a wider range of locations, which is a no-brainer.

In addition, the company’s fiscal first-quarter results report had several positives. First, the GAAP total net sales of the corporation increased to $330 million, an increase of 69% over the previous year. This year’s first quarter saw a 110 percent growth in adjusted EBITDA over last year’s same period. SoFi’s adjusted EBITDA has now been positive for seven quarters.

Finally, the overall number of members reached approximately 3.9 million, a 70 percent increase year-over-year, thanks to adding over 408,000 new members during the third quarter. Would you keep an eye on SOFI shares once everything is said and done?

Fidelity National

Global fintech solutions provider for merchants, banks, and capital market organizations, Fidelity National, is headquartered in New York City. On the Fortune 500 and the S&P 500, the corporation is one of the world’s biggest processing and payment companies (INDEXSP:.INX).

The Modern Banking Platform from Fidelity, which is fully API-enabled, was made accessible on the Microsoft Azure Cloud. According to a press announcement, “(the platform) enables banks to create, produce, and launch new goods and services.” AI and a component-based design make the Modern Banking Platform highly configurable and secure for financial institutions and their clients,” the company says.

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